Kokako

SIP BY SIP, A BREW-TIFUL CHANGE

Screenshot 2023 08 25 at 11 12 03 PM

Author

Darcy Hunter

Darcy Hunter

School

University of Otago

University of Otago

Professor

Joe Cooper

Joe Cooper

Global Goals

12. Responsible Consumption and Production 13. Climate Action 14. Life Below Water 15. Life on Land 17. Partnerships for the Goals

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Summary

New Zealand produces a staggering 2.5 million tonnes of plastic packaging waste annually, with their plastic packaging waste recycling rate hovering at a mere 28%. These figures barely begin to uncover the underlying and systemic nature of plastic packaging waste, and serve as a stark reminder of the need to implement robust measures to combat this pressing challenge. Nestled within the inviting aroma of freshly roasted beans, Kokako has introduced an innovation not only addressing this issue but dancing in harmony with the United Nations Sustainable Development Goals. In their pursuit of sustainability, Kokako’s innovation introduces a reusable bucket scheme, a visionary approach that revolutionises how they cater to their local hospitality clientele. This scheme involves the utilisation of reusable buckets for the seamless delivery of their coffee offerings, not only reducing single-use packaging waste but also embodying the principles of resource efficiency and the circular economy. Through this innovation, Kokako not only enhanced operational efficiency but also significantly contributed to reducing their ecological footprint. In this story, the irresistible allure of coffee converges with the aspirations of a better world, reminding us that even the smallest actions can reverberate across the globe.

Innovation

The Kokako bucket scheme represents a proactive response to the challenge of single-use packaging waste that plagues modern consumer industries. Instead of traditional coffee packaging like bags or pouches, Kokako offers customers the option to purchase coffee beans in reusable, food-grade plastic buckets. These buckets are designed to be durable and are specifically made for this purpose. The coffee beans are stored in these reusable buckets, which customers can return once they've used the coffee. This significantly reduces the need for single-use packaging materials. Additionally, Kokako collaborates with refilleries and selects partner locations where customers can bring their empty buckets to refill with freshly roasted coffee beans. These refill stations are strategically placed to make it convenient for customer access.

In October 2019, Kokako launched their first fleet of buckets. As outlined in their 2020 Sustainability Report, Kokako witnessed the delivery of 297 buckets of 4kg capacity and 1,139 buckets of 6kg capacity to outpost customers across Auckland. It is important to note that this data did not encompass the complete reporting timeframe, yet it undeniably underscored Kokako’s successful avoidance of 8,022 single-use bags in the process of distributing their premium beans. To frame this achievement within the larger landscape, Kokako delivered a remarkable 34.5% of all 1kg coffee in reusable buckets with zero packaging throughout the reporting period.

During the most recent reporting span, Kokako’s distribution efforts encompassed the delivery of 985 buckets with a 4kg capacity and an impressive 5,839 buckets with a 6kg capacity, reaching customers throughout Auckland. This collaborative effort resulted in a remarkable accomplishment of avoiding the use of 39,019 single-use compostable bags, thereby facilitating the transportation of a staggering 39 tonnes of coffee, entirely free from conventional packaging. In essence, the Kokako bucket scheme is more than a mere operational adjustment; it is a strategic response that addresses the multifaceted challenges posed by single-use packaging waste.

SIP BY SIP, A BREW-TIFUL CHANGE

Inspiration

Kokako's bucket scheme was born from a practical observation made by their team regarding excessive packaging used in their wholesale accounts. Sam Taylor, Kokako's marketing manager, explains, "We noticed how much packaging we were going through with our wholesale accounts and wanted to do something about it." This prompted them to take action and seek alternatives. The concept was further inspired from a similar initiative implemented by Eight Thirty, another roastery. Recognizing the merit of this approach, Kokako adopted it as a framework for their own implementation, establishing the innovative bucket scheme as a way to address the packaging challenge. This underscores the collaborative nature of the coffee industry, where innovation can stem from various quarters.

Sam states, “The coffee industry thrives on collaboration, and we maintain close partnerships with organisations like the Energy Efficiency and Conservation Authority and the New Zealand Speciality Coffee Association. Together, we're committed to reducing our industry's carbon emissions, and we actively share our knowledge and insights with everyone, including our competitors, because, in the pursuit of sustainability, collective efforts are paramount.”

The motivation behind Kokako’s bucket scheme was a steadfast commitment to waste reduction. While their packaging is already home compostable, they believe the most effective solution is minimising packaging altogether. To align with this ethos, Kokako actively collaborates with refilleries such as GoodFor and advocates for customers to embrace reusable containers when obtaining their beans. Their motivation is clear: to lead by example in fostering sustainable practices and continuously seek ways to reduce their environmental footprint.

Overall impact

Kokako's bucket scheme has delivered concrete, immediate results and holds the potential for lasting industry change. In the short term, Kokako's bucket scheme swiftly reduced the use of packaging waste, avoiding thousands of disposable bags. The immediate reduction in single-use packaging aligns with Sustainable Development Goal 12, which emphasises responsible production and consumption. Furthermore, this waste reduction also resonates with environmentally conscious consumers. The adoption of sustainable practices, such as the use of reusable containers, can enhance a business's reputation and engage environmentally conscious customers. This engagement can translate into increased customer loyalty and sales. In addition, Kokako has experienced cost savings. While there was an initial investment in their bucket scheme, the elimination of ongoing expenses related to single-use packaging led to a reduction in operational costs.

Over the long term, Kokako's bucket scheme has the potential to influence industry-wide transformation. Their pioneering efforts inspire other coffee roasters to rethink their packaging practices, potentially reshaping the industry's approach to packaging and reducing its ecological footprint. This transformative potential aligns with SDG 12's goal of achieving sustainable consumption and production patterns. Additionally, the continued use of reusable containers in place of single-use packaging contributes to environmental conservation. Over time, this can lead to reduced landfill waste, decreased resource depletion, and a smaller ecological footprint.

Furthermore, as Kokako collaborates with partners and advocates for a shift towards reusable practices, they reinforce the principle of collective action in mitigating their environmental impact, which can lead to the development of more eco-friendly materials and processes. This collaborative spirit mirrors SDG 17, emphasising partnerships for the achievement of sustainable development goals.

Business benefit

The impact of Kokakos’ bucket scheme on their business landscape is profound and has yielded significant and lasting benefits for their business. During the reporting period, they successfully eliminated the need for 39 tonnes of traditional coffee packaging. This achievement substantially reduced their packaging costs, contributing to a remarkable increase in their annual revenue. This financial impact has allowed Kokako to allocate resources more efficiently and invest in other critical areas of their operations.

In addition to the financial gains, Kokako's commitment to sustainability and waste reduction has had a positive impact on their workforce. Employees have expressed higher job satisfaction and engagement, leading to a noticeable improvement in employee retention rates. The reduced turnover not only saves their recruitment and training costs but also fosters a more experienced and dedicated workforce.

Furthermore, their eco-conscious initiatives have expanded their market reach. More customers are embracing Kokako's innovative bucket scheme, initially launched in Auckland due to logistical considerations. The success of this initiative underscores their unwavering dedication to reducing the environmental footprint of packaging. As Kokako proactively explores opportunities to extend this program nationwide, they position themselves as leaders in sustainability and waste reduction, creating new avenues for growth and market expansion.

Kokako's bucket scheme innovation has brought about clear and substantial benefits: increased revenue, improved employee retention, and market expansion. Beyond the financial gains, their commitment to ecological responsibility, as evidenced by Sam’s statement that 'Less packaging is good for us financially, but mainly it's better for the environment,' sets a precedent for responsible business practices that benefit both their enterprise and the environment.

Social and environmental benefit

Kokako’s bucket scheme offers substantial societal and environmental benefits. In terms of the societal benefits, the bucket scheme actively encourages a shift in consumer behaviour towards more sustainable practices. Customers who participate in their bucket scheme become part of a community that values waste reduction and responsible consumption. It promotes awareness and education about the environmental consequences of packaging waste and the importance of making eco-conscious choices, contributing to a societal shift towards a culture of sustainability. Moreover, the bucket scheme exemplifies partnerships for the goals (SDG 17) by fostering collaboration among Kokako and their local hospitality partners. This joint effort not only reduces environmental impact but also nurtures a sense of shared responsibility and collective action.

Regarding the environmental benefits, through embracing the bucket scheme, Kokako significantly reduces its reliance on single-use packaging materials, leading to a direct reduction in waste production, waste which often ends up in landfills or as litter in natural environments. The environmental footprint associated with the creation, transportation, and disposal of traditional packaging is drastically minimised, aligning with the principles of responsible consumption and production (SDG 12).

This innovation also underscores the imperative of climate action (SDG 13). By mitigating the environmental consequences of packaging waste, Kokako contributes to the reduction of carbon emissions and the broader effort to combat climate change. Simultaneously, the scheme advances the conservation of life below water (SDG 14) and life on land (SDG 15) by minimising the pollutants that often find their way into oceans, rivers, and terrestrial ecosystems.

Overall, Kokako's bucket scheme is an exemplary model of how a simple change in packaging can have far-reaching benefits for both society and the environment, fostering a more sustainable future for all. Through their dedicated efforts at Kokako, they have actively contributed to the advancement of five UN Sustainable Development Goals: 12, 13, 14, 15 and 17.

Interview

Sam Taylor, Marketing Manager

Business information

Kokako

Kokako

Auckland, Auckland, NZ
Business Website: https://www.kokako.co.nz/
Year Founded: 2001
Number of Employees: 11 to 50

Tucked in the vibrant heart of Auckland, Kokako Coffee Roasters emerges as a beacon of ethical coffee craftsmanship. Since its inception in 2001, Kokako has transcended mere coffee roasting, embracing a holistic approach that weaves together premium beans, sustainable practices, and community engagement. Kokako roasts and sells Fairtrade, organic specialty coffee, supplying over 100 cafes and restaurants throughout Aotearoa, whilst also selling their coffee online and in specialty grocers. With a commitment as rich as the flavours they create, Kokako sources its beans through direct partnerships with growers, ensuring fair compensation and sustainable practices. On a mission to redefine the coffee experience, they have become a haven for aficionados seeking not just a cup of joe, but a meaningful connection to the entire journey from bean to brew.